Marianna Goldenberg of Penn Wealth Planning has answered this question in her weekly commentary which I always find to be informative and insightful. She stated:
"If history is any indication: The fourth quarter of mid-term election years is almost always favorable for stocks. The market’s reaction to mid-term elections, as uncertainty fades, has almost always been positive, with fourth quarter gains as measured by the S&P 500 index averaging 8% in mid-term election years. The only two exceptions to the gains in the fourth quarter of every mid-term election year since 1950 were 1978 and 1994, when the Fed was hiking rates aggressively, a critical factor that is highly unlikely to take place this quarter. So far, stock market performance in 2010 has tracked the typical pattern for U.S. stocks in mid-term election years, albeit with a bit more than the usual volatility."
For those who wanted to know the answer to our question, this explaination might be as good as it gets. Contact us for your estate planning, probate and elder law needs at www.ythlaw.com
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